297 posts on "Financial Markets"
August 18, 2015
Liquidity during Flash Events
“Flash events,” extremely large price moves and reversals over just a few minutes, have occurred in some of the world’s most liquid markets in recent years.
August 17, 2015
Has U.S. Treasury Market Liquidity Deteriorated?
The issue of financial market liquidity has received tremendous attention lately. This partly arises from market participants’ concerns that regulatory and structural changes have reduced dealers’ market making abilities, but also from events such as the taper tantrum and the flash rally, in which Treasury prices fluctuated sharply amid seemingly little news. But is there really evidence of a sustained reduction in Treasury market liquidity?
Introduction to a Series on Market Liquidity
Market participants and policymakers have raised a number of concerns about the potential adverse effects of financial regulation on market liquidity—the ability to buy and sell securities quickly, at any time, at minimal cost.
August 12, 2015
Do Asset Purchase Programs Push Capital Abroad?
Thomas Klitgaard and David O. Lucca Euro area sovereign bond yields fell to record lows and the euro weakened after the European Central Bank (ECB) dramatically expanded its asset purchase program in early 2015. Some analysts predicted massive financial outflows spilling out of the euro area and affecting global markets as investors sought higher yields […]
Posted at 7:00 am in Balance of Payments, Euro Area, Exchange Rates, Exports, Financial Markets, International Economics, Monetary Policy | Permalink | Comments (2)
August 10, 2015
History of Discount Window Stigma
In August 2007, at the onset of the recent financial crisis, the Federal Reserve encouraged banks to borrow from the discount window (DW) but few did so.
Posted at 7:00 am in Fed Funds, Financial Institutions, Financial Markets | Permalink | Comments (1)
August 7, 2015
Crisis Chronicles–The California Gold Rush and the Gold Standard
On the crisp morning of January 24, 1848, James Marshall, a carpenter in the employ of John Sutter, traveled up the American River to inspect a lumber mill that Sutter had ordered constructed close to timber sources.
August 3, 2015
Investigating the Trading Activity of CLO Portfolio Managers
Stavros Peristiani and João A.C. Santos Unlike mortgage-backed and home equity-backed securities, collateralized loan obligations (CLOs), whose collateral is predominantly corporate loans, are slowly but steadily recovering. This revival, illustrated in the chart below, spotlights again a sector of nonagency structured finance that has been scrutinized for its investment practices. This post investigates the trading […]
July 20, 2015
Have Dealers’ Strategies in the GCF Repo® Market Changed?
In a previous post, “Mapping and Sizing the U.S. Repo Market,” our colleagues described the structure of the U.S. repurchase agreement (repo) market.
Just Released: The U.S. Treasury Market on October 15, 2014
The $12.7 trillion U.S. Treasury market plays a critical role in the global economy, serving as the primary means of financing the U.S. government, a risk-free benchmark for other financial instruments, and a key venue for the Federal Reserve’s implementation of monetary policy.
July 1, 2015
What Do Bond Markets Think about “Too‑Big‑to‑Fail” Since Dodd‑Frank?
As we discussed in our post on Monday, the Dodd-Frank Act includes provisions to address whether banks remain “too big to fail.”
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